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Single-Echelon Systems: Deterministic Lot Sizing

In: Inventory Control

Author

Listed:
  • Sven Axsäter

    (Lund University)

Abstract

When using an (R, Q) policy we need to determine the two parameters R and Q. We shall first consider the determination of the batch quantity Q. (When using an (s, S) policy, Q essentially corresponds to S—s.) We shall in this chapter assume that the future demand is deterministic and given. If the lead-time is constant, it does then not affect the problem and we can therefore just as well assume that the lead-time L = 0. The only difference in case of a positive lead-time is that we need to order L time units earlier. See also the discussion in Sect. 4.1.3. (If the demand is stochastic, we cannot disregard the lead-time.)

Suggested Citation

  • Sven Axsäter, 2015. "Single-Echelon Systems: Deterministic Lot Sizing," International Series in Operations Research & Management Science, in: Inventory Control, edition 3, chapter 4, pages 45-63, Springer.
    • Handle: RePEc:spr:isochp:978-3-319-15729-0_4
    DOI: 10.1007/978-3-319-15729-0_4
    as

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